Daily Market Analysis (SHORT TERM) Monday 01/07/2013

Confirmation of a top with a range violation on 01/04/13 @ 111.26. Confirmation of a bottom with a close violation on 12/12/12 @ 108.02. Upside Targets = 110.67 – 111.37

February Brent Crude dropped lower on Friday to end the week just above Monday’s close and also slightly above the daily mid-range.

Brent was able to make an early move higher into the New Year but could not sustain the bullish momentum to trade through the Q4 highs and may set back to the $110 level it has traded around for five months.

Projected Daily Range: 1.48

Projected Weekly Range: 3.33

Projected Monthly Range: 7.54

WTI Crude Oil (February ‘13):

Short Term Trends are bullish.

Confirmation of a top with a range violation on 01/04/13 @ 91.55. Confirmation of a bottom with a close violation on 12/18/12 @ 88.40. Upside Targets = 90.10 – 90.68.

February WTI crude oil reversed course from its early losses to close back just a few ticks off the session’s high.

WTI may see a little drop lower in early week trading but find strong support near $92 and then return to make a move back through the $95 resistance level onward to the IT objective of $97.

Confirmation of a top with a range violation on 12/26/12 @ 3.362. Confirmation of a top with a close violation on 01/02/13 @ 3.315. Downside Targets = 3.102 – 3.055.

February Natural Gas received a nice bounce on Friday following the largest storage draw of the season as it tried to recapture some of the lost ground from Wednesday’s HFT debacle.

With this past week bringing cold weather throughout the producing regions as well as the northern parts of the country, look for another large withdrawal and for natural gas to work its way higher back near the $3.45 mark.

About the Author

KMH is a trading and technical analysis firm that specializes in commodity futures and commodity based ETF’s. Kris Hicks has worked for numerous years in the commodity business and in 2011 accurately forecasted both $25 moves to the downside in May and July and the $25+ move to the upside in October in oil. He also called the all-time high day for gold on Sept. 6, 2011 and forecasted a projected downside target of 1528.10 in March 2012. He was also responsible for projecting the Q2 and Q4 low in the Euro FX to within 13 and 9 ticks, respectively. His trading methodology has a high degree of accuracy which confirms tops/bottoms, projected trading ranges and projected targets for those ranges. His expertise is focused on 16 commodities plus the comparable ETF markets. You can reach Kris at Kris@KMH-Capital.com or visit his website at www.KMH-Capital.com.